RICHMOND — The State Corporation Commission (SCC) has
approved a rehabilitation plan, including a plan of conversion, for Shenandoah Life
Insurance Company. The plan involves an acquisition of the Roanoke-based insurance
company by United Prosperity Life.
In its final order approving the rehabilitation plan, the Commission said the plan
of conversion of Shenandoah Life from a mutual company owned by policyholders and
the acquisition by United Prosperity Life, a stock company, is “fair and equitable”
Shenandoah has been in receivership since February 2009. A receivership order was
issued by the Circuit Court of the City of Richmond after the SCC and Shenandoah
Life determined that entering receivership was necessary to protect the interests
of Shenandoah's policyholders and creditors.
Upon the closing of the transaction and following policyholder approval for the
demutualization, Shenandoah would become a wholly-owned subsidiary of United Prosperity
Life Insurance Company. As part of the acquisition, United Prosperity will invest
a minimum of $60 million in Shenandoah. If approved by more than two thirds of the
votes cast by Shenandoah’s policyholders, the transaction is expected to close by
the first quarter of 2012. United Prosperity has indicated that it plans to continue
operating out of the Roanoke office.
The moratorium placed on policy loans, cash or surrender values, surrenders, fund
transfers, lapses, cash outs and similar payments will remain in place and may be
extended by United Prosperity into the first quarter of 2013. Additionally, Shenandoah
will not resume the issuance of new insurance policies until after the acquisition
by United Prosperity Life Insurance Company is complete.
Case number INS-2011-00155
Final Order Approving Plan
Policyholders with questions about the receivership are
encouraged to call Shenandoah at (540) 985-4400. Also, information can be obtained
at www.shenlife.com. Calls may also be directed to the SCCs' Bureau of Insurance.
From within Virginia, the toll free number is 1-800-552-7945. Callers may also dial
direct at (804) 371-1502.